Detailed performance breakdown and feedback
94 / 104
Outstanding Performance!
Score: 2/2
Excellent. Both disadvantages correctly identified.
Score: 2/2
Excellent. Identification and reasoning are clear and accurate.
Score: 5/5
Excellent. Comprehensive and accurate explanation and application.
Score: 4/4
Excellent. Logical explanation of relative price changes. The final sentence regarding the 'law of demand' was off-topic but did not detract from the core correct reasoning.
Score: 3/3
Excellent. Correct integration type and two valid motives provided.
Score: 4/4
Excellent. Two distinct reasons with adequate explanations provided, despite minor grammatical issues.
Score: 2/2
Excellent. Clear and concise answer.
Score: 3/3
Excellent. Reasoning is sound and covers all necessary points.
Score: 0/2
Economic reasoning for currency recommendation was confused. The HKD linked exchange rate system provides stability between HKD and USD, not GBP. Recommending GBP based on "more stable" in the context of HKD's linked rate is incorrect. Understanding the implications of the linked exchange rate system on exchange rate stability between HKD and USD is crucial.
Score: 1/1
Excellent.
Score: 3/3
Excellent. Although the notation "1/5%" was ambiguous, the final result indicated a correct understanding of the new required reserve ratio and the credit creation process. Clearer working steps are advised, especially for numerical values like reserve ratios.
Score: 4/4
Excellent. Two key characteristics of good money were correctly identified and explained.
Score: 2/3
Opportunity costs for both goods in both countries and comparative advantages were successfully calculated. Marks were lost for not clearly expressing the range of terms of trade. Ensure the range is written in a readable format (e.g., 0.4W < 1R < 0.5W).
Score: 2/2
Excellent.
Score: 2/4
Understanding of demand shift and quota quantity was good. Practice drawing the kinked supply curve for a quota in a small open economy. The supply curve should reflect domestic supply, world price for imports up to the quota limit, and then higher domestic supply beyond that. This error affected the accuracy of the final equilibrium point.
Score: 2/2
Excellent.
Score: 2/2
Excellent.
Score: 2/2
Excellent.
Score: 5/7
Verbal Explanation (4/4): Correctly explained subsidy increases supply, price falls, and quantity transacted increases (1 mark). Stated with inelastic demand, the percentage decrease in price is larger than the percentage increase in quantity (1 mark). Concluded consumer expenditure will decrease (1 mark). Linked price fall and quantity rise to supply increase (1 mark).
Diagram (1/3): Correctly showed a rightward shift of the supply curve (S1 to S2) (1 mark). Incorrectly labeled areas for "Decrease in Consumer expenditure" and "Increase in Consumer expenditure"; diagram did not correctly represent the (P0-P1)*Q0 and P1*(Q1-Q0) areas (0 marks). Condition (-) > (+) could not be assessed due to incorrect area labeling (0 marks).
Verbal explanation was strong, covering economic reasoning for decreased consumer expenditure with inelastic demand and a subsidy. Diagram needs significant improvement in illustrating the change in consumer expenditure. Practice drawing and clearly labeling specific rectangular areas representing the decrease and increase in consumer expenditure to demonstrate the net change.
Score: 4/4
Excellent. Thorough and accurate explanation of positive externality and the role of a subsidy in improving economic efficiency.
Score: 1/2
Correctly identified the deflationary gap in the diagram. Missed providing the verbal definition (the difference between aggregate output and full-employment output when aggregate output is below full-employment output). Always provide both definition and diagrammatic representation when asked.
Score: 7/7
Verbal Explanation (3/3): Correctly explained factory closures decrease short-run aggregate supply (SRAS) (1 mark). Correctly explained job losses and pessimism decrease consumption/investment, causing aggregate demand (AD) decrease (1 mark). Concluded aggregate output decreases, widening the deflationary gap (1 mark).
Diagram (4/4): Correctly shifted AD curve left (AD0 to AD1) (1 mark). Correctly shifted SRAS curve left (SRAS0 to SRAS1) (1 mark). Correctly showed new, wider deflationary gap (`gap2`) from both shifts (1 mark). Maintained LRAS curve (1 mark).
Excellent. Explanation and diagram were fully consistent and accurate, demonstrating strong grasp of AD/AS shifts and their impact on the deflationary gap.
Score: 4/4
Excellent. Steps of monetary policy through open market operations were clearly and logically explained.
Score: 2/2
Excellent.
Score: 1/2
Correctly identified the impact of more retirees. For multi-part questions requiring distinct reasons, ensure each point is separate and specific. Population aging contributes to more retirees but is not a separate mechanism for labor force decline unless linked to specific groups like increasing proportions of students or homemakers.
Score: 7/7
Verbal Explanation (4/4): Correctly explained fixed wage rate is "set below the equilibrium level" (1 mark). Stated "labor shortage one exists" (1 mark). Explained "importation of worker" leads to increased "worker supply" (1 mark). Concluded "the labor shortage still exists" but is "decreased" (1 mark).
Diagram (3/3): Correctly showed fixed wage rate (Wo) below equilibrium wage (1 mark). Correctly indicated initial shortage (demand minus supply at Wo for S1) (1 mark). Correctly showed supply curve shifting right (S1 to S2) due to imported workers (1 mark). Correctly showed a new, smaller shortage after the supply shift (1 mark).
Excellent. Explanation and diagram are fully consistent and accurate, clearly demonstrating the effects of imported labor on a market with a fixed wage and initial shortage.
Score: 2/3
Act of remitting income and its impact on the current account were correctly explained. Misidentified the specific component. Remittances are classified under secondary income (current transfers), not factor income (primary income). Factor income refers to earnings from factors of production like wages/profits/interest/rent. Practice differentiating between these current account components.
Score: 14/14
Aggregate Output (7/7):
Government Expenditure (2/4):
Average Labour Productivity (4/5):
Evaluation (1/1): Provided a comparative evaluation, suggesting Strategy II is better for immediate impact and where Strategy I's effects are uncertain (1 mark).
Essay demonstrated strong economic reasoning across most variables and good understanding of short-term and long-term effects.
Score: 2/2
Excellent. A practical and well-explained strategy.
Review the original student script: